Microsoft and US President Donald Trump have worked out an agreement which gives the software giant 45 days to finalise a deal for the US arm of Tiktok.
The software giant said in a statement that its chief executive Satya Nadella has been in discussions with the President about a potential Tiktok purchase, and that it may invite other “American investors” to participate on a minority basis.
Microsoft said the pair had set a deadline of 15 September for a deal to be confirmed, as the President changed his mind on whether to allow negotiations between Microsoft and Tiktok’s Chinese owner Bytedance to continue.
The deal would move Microsoft, which also owns professional network Linkedin, firmly onto the social media map, making companies such as Facebook and Snap its rivals.
Bytedance has been under pressure to find a solution for its US entity, after Trump threatened to ban the app over the weekend due to its Chinese origins.
Microsoft said it would ensure that all private data of Tiktok’s American users is transferred to and remains in the US.
“Microsoft fully appreciates the importance of addressing the President’s concerns. It is committed to acquiring Tiktok subject to a complete security review and providing proper economic benefits to the United States, including the United States Treasury,” Microsoft said in a statement.
Meanwhile Tiktok’s move to transfer its headquarters from London to Bejing is set to get ministerial approval this week, with two of its top executives set to relocate.
